Germany to propose cutting funds to EU members that violate rule of law

Member states that fail to meet EU standards on the rule of law could lose access to its financing under German proposals for the reform of the cohesion fund system seen by Reuters yesterday (30 May).

Such a move would be enormously sensitive in some countries that are net recipients of cohesion funding. Hungary and Poland, who have both received large sums, have repeatedly been criticised by Brussels for weak rule of law standards.

Commission Vice-President Jyrki Katainen reminded the Visegrád countries today (28 March) that the solidarity they expect from the EU’s cohesion policy also applies to the refugee crisis.

The seven-page German government document sets out broad considerations to guide Berlin’s approach to upcoming Brussels negotiations on post-2020 changes to the system by which the EU supports development in its poorer member states.

“The possibility should be investigated of whether the receipt of EU cohesion funds could be linked to adherence to fundamental rule of law principles,” the document states, suggesting that countries could see funds docked if they ignore the executive European Commission’s reform recommendations.

Any such proposal would likely be fiercely contested by net recipients, but the position of Germany, as the single largest contributor to the EU’s budget and cohesion funds, would carry weight in any discussions.

“The discussions around future cohesion policy can’t be seen in isolation, but must be discussed in the context of the future multi-year financing framework of the EU and its role in the implementation of the EU’s priorities,” the document says.

The Visegrad Four countries – the Czech Republic, Hungary, Poland and Slovakia – made no secret that they oppose the new asylum policy as recently proposed by the European Commission. The EURACTIV network reports.

Since the conservative Law and Justice party took office in Poland in 2015, it has been repeatedly criticised by the European Commission for a seemingly authoritarian drift, most recently with changes to the judicial system.

Hungary has been at loggerheads with the Commission almost permanently since the nationalist government of Viktor Orbán took power in 2010. Most recently, it has been criticised for a higher education law that critics say targets a prestigious private university in Budapest.

Budget Commissioner Günther Oettinger said on Tuesday (30 May) that the country-specific recommendations which the Commission regularly issues could be used “as a blueprint, as a compulsory document” which could allow a “certain degree of conditionality”.

Günther Oettinger today (30 May) presented the draft EU budget for 2018, acknowledging decision-making difficulties. He said the next long-term budget should be tabled by next summer, to take into account the Brexit context and the decisions on the future of the Union.

Background

The presidents of Europe's three main institutions yesterday (5 May) presented a bleak picture of the European Union, saying the 28-nation bloc lacked leadership and was descending into petty, nationalist politics.

6 responses to “Germany to propose cutting funds to EU members that violate rule of law”

When the kids do not do as they are told… stop the pocket money …. always works … I mean look at naughty Tsipras unable to go out or buy food for the Greek people … Yes …. do as your told or you will be Greece part 2

In Greece, the independence of the judiciary, the media, NGOs and universities are not being gagged or marginalised. The Greek government is not proudly announcing the creation of an illiberal state. The Greek Constitutional Court was not packed with cronies of Alexis Tsipras. If you can’t see the difference with the Polish and Hungarian cases, you’re either ignorant or just underwent a lobotomy.